Oracle vs Walmart Which Performs Better?

Oracle Corporation and Walmart Inc. are two major players in the stock market, each with their own unique strengths and offerings. Oracle is a leading multinational computer technology corporation known for its software and cloud solutions. On the other hand, Walmart is the world's largest retail chain, providing a wide range of consumer goods and services. Investors often compare the performance of these two stocks in order to make informed financial decisions and capitalize on potential growth opportunities.

Oracle or Walmart?

When comparing Oracle and Walmart, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Oracle and Walmart.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Oracle has a dividend yield of 0.99%, while Walmart has a dividend yield of 0.86%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Oracle reports a 5-year dividend growth of 11.95% year and a payout ratio of 38.04%. On the other hand, Walmart reports a 5-year dividend growth of -17.10% year and a payout ratio of 33.64%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Oracle P/E ratio at 38.77 and Walmart's P/E ratio at 39.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Oracle P/B ratio is 32.79 while Walmart's P/B ratio is 8.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Oracle has seen a 5-year revenue growth of 0.78%, while Walmart's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 119.57% and Walmart's ROE at 22.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $157.05 for Oracle and $94.76 for Walmart. Over the past year, Oracle's prices ranged from $110.67 to $198.31, with a yearly change of 79.19%. Walmart's prices fluctuated between $58.56 and $105.30, with a yearly change of 79.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.